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Effects of COVID-19 in the Financial Statements of Selected Companies Listed in Warsaw Stock Exchange

Author

Listed:
  • Stanislaw Honko
  • Marzena Remlein
  • Malgorzata Rowinska-Kral
  • Katarzyna Swietla

Abstract

Purpose: The objective of this article is to evaluate the quality of the presented content concerning the impact of the COVID-19 pandemic on continuing activities of selected companies listed in Warsaw Stock Exchange. Design/Methodology/Approach: In the first part we applied critical review of subject literature and the monographic method. In the second part, the content analysis method was used, and the basic source material were the financial statements - annual for 2019 and interim for 2020. Findings: Research demonstrates that disclosures of events following the balance sheet date did not allow users of financial statements to assess the risk associated with the impact of COVID-19. Some companies completely ignored the risk related to the pandemic in their financial statements, and in some cases the scope of disclosures is symbolic. Practical Implications: Indicating the gap between the expected and actual scope of disclosures regarding the consequences of the pandemic in financial statements, which are the primary source of information about a listed company that are further authenticated by an auditor. Originality/value: Demonstration of the insufficient level of disclosures regarding the impact of the pandemic on the financial condition and performance of the entities audited, including a lack of numerical analyses of its impact on the entity's ability to continue operations, and the valuation of its assets and liabilities.

Suggested Citation

  • Stanislaw Honko & Marzena Remlein & Malgorzata Rowinska-Kral & Katarzyna Swietla, 2020. "Effects of COVID-19 in the Financial Statements of Selected Companies Listed in Warsaw Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 854-871.
    • Handle: RePEc:ers:journl:v:xxiii:y:2020:i:special2:p:854-871
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    References listed on IDEAS

    as
    1. Bezemer, Dirk J., 2010. "Understanding financial crisis through accounting models," Accounting, Organizations and Society, Elsevier, vol. 35(7), pages 676-688, October.
    2. Christian Laux & Christian Leuz, 2010. "Did Fair-Value Accounting Contribute to the Financial Crisis?," Journal of Economic Perspectives, American Economic Association, vol. 24(1), pages 93-118, Winter.
    3. Rajni Mala & Parmod Chand, 2012. "Effect of the global financial crisis on accounting convergence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 52(1), pages 21-46, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Boguslaw Waclawik, 2021. "Corporate Reporting in the Time of COVID-19: Analysis of Information Disclosed by Selected Companies Listed on the Warsaw Stock Exchange," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 1), pages 386-402.
    2. Beata Bieszk-Stolorz & Iwona Markowicz, 2022. "Changes in Share Prices of Macrosector Companies on the Warsaw Stock Exchange as a Reaction to the COVID-19 Pandemic," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    3. Agnieszka Laskowska & Jan Laskowski, 2021. "Expectations of Young People Towards Their Future Work and Career After the SARS-CoV-2 Pandemic Outbreak in Poland," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 17-34.

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    More about this item

    Keywords

    Events after the reporting period; pandemic; quality of financial statements; COVID-19; European Union.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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